Bitcoin Fees Soar Above Ethereum’s As Investors Flock To Ordinals-Backed Assets

Christian Encila

Last Updated: November 21, 2023 6:36 am

3 mins read

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CryptoFees data shows that Bitcoin daily fees averaged $10.65 million from November 16 to November 18, surpassing Ethereum’s average fee of nearly $7 million for the same period.

Until 2024, the US Securities and Exchange Commission (SEC) is deferring decisions on several Bitcoin ETF applications, despite the market’s increasing optimism about the approval of a spot Bitcoin exchange-traded fund (ETF) in the US.

This hesitation has coincided with a remarkable surge in the top crypto’s average transaction fees, soaring over 1,000% to reach a peak of $18.67 on November 16, according to BitInfoCharts data.

The average daily transaction fees for BTC, totaling $37,370, have seen a reversal with Ethereum. This change comes in the wake of heightened activity related to Ordinals on the Bitcoin network.

Bitcoin Fees Hit Highest Point In 6 Months

During the observed trend, it became evident that Bitcoin’s average daily trading fee experienced a noteworthy surge, reaching its highest point in the past six months on November 16, where it peaked at $18.67.

This spike in transaction fees within the Bitcoin network indicated a moment of heightened activity and demand. In contrast, over the same period, Ethereum’s transaction fees registered at $7.90, showcasing a relatively lower level compared to Bitcoin.

The divergence in fee dynamics between the two prominent cryptocurrencies underscores the distinct market forces and user behaviors influencing their respective blockchain networks.

Bitcoin has outpaced Ethereum in daily fees in the last five days. Source: BitInfoCharts

This fluctuation underscores the dynamic nature of transaction fees in the cryptocurrency space, with Bitcoin experiencing notable shifts in its fee landscape.

Contrary to worries about the potential deterrent effect of elevated transaction fees on Bitcoin users, on-chain data suggests a contrasting trend.

From late October, Ordinals inscriptions increased by almost 6 million. Source: Dune Analytics

Widespread Adoption And Growing Addresses

Recent data from IntoTheBlock reveals a notable surge in Bitcoin adoption, hitting a new yearly high at 67.62% this week.

This increase in adoption is reflected in the uptick of newly created active addresses, signaling a substantial influx of new participants into the market.

Bitcoin retakes the $37K territory. Chart: TradingView.com

Ordinals Gathering Momentum

Additionally, the volume of Bitcoin held by long-term investors has reached an unprecedented high, with over 1 million addresses now possessing more than 1 unit of Bitcoin.

This data indicates a growing and robust interest in Bitcoin, despite concerns about transaction fees, as evidenced by both increased user participation and a rise in long-term holdings.

Since October 24, the network has redistributed approximately 800 BTC in fees, equivalent to $30 million, as a result of the production of nearly 6 million Ordinal assets.

Following ORDI’s (the second-largest BRC-20 token by market capitalization) debut on Binance on November 7, the increase in Ordinals inscription activities gathered momentum.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.